Samuel Rickett

The applicant, as Note Trustee of the Maple Trust, brought a motion for an order approving a marketing and sale process for the trust's assets following an Event of Default.

The motion was contested by a party who argued that any sale must obtain prior court approval.

The court approved the sale process but ordered that it include a provision requiring prior court approval for any transaction, applying the Soundair principles, to ensure the best possible price is obtained without unnecessary delay.

Staff of the Ontario Securities Commission brought a hearing under section 127 of the Securities Act regarding Magna International Inc.'s proposed plan of arrangement to collapse its multiple voting share structure.

Staff alleged the management information circular lacked sufficient information and the transaction was contrary to the public interest.

The Commission found the proposed transaction was not abusive, but concluded the circular failed to provide shareholders with sufficient disclosure to make an informed decision, particularly given the lack of a board recommendation and the transaction's nature as a related party transaction.

The Commission ordered that the circular be amended to include specific material information, including financial analysis and alternatives considered by the special committee, before the shareholder vote could proceed.

H & R Block purchased stock in bulk from Tax Time without complying with the Bulk Sales Act, instead paying the entire proceeds to secured creditors.

National Trust, an unsecured creditor, sought an accounting under s. 16(2) of the Act.

The Court of Appeal held that H & R's unilateral decision to pay certain creditors was not a proper accounting under the Act, making H & R liable to National Trust for the debt existing at the time of the bulk sale.

However, the Court allowed the appeal in part, finding H & R was not liable for the costs of subsequent litigation between National Trust and Tax Time, as those were post-sale debts.